Operational Cost Management Requires A Systematic Approach

Many factors go into the successful running of a business. In most cases, business owners apply a systematic approach to generating sales and enhancing productivity. In the area of operational cost management, however, often it is a matter of “hit and miss” or, at the very least, a passive, shared responsibility among all personnel. But merely admonishing staff to save on paper, be energy-efficient and limit courier deliveries is not enough to truly generate legitimate cost savings.

Cost-cutting practices need to be clear and consistent. Executives need to find the time to actively review expenses, pinpoint areas for cost reductions and mold staff behavior into a pro-active stance that reflects leadership and intuitive thinking. Should the time or the resolve be lacking for these measures, it might be wise to consider a cost management consultant to expertly manage the situation.

First, you must ask yourself what a consultant might actually do for your company, then you must determine whether the operational cost savings will justify the consultant’s fees. Next, how will that fee be paid? Will it be a fee for service or a contingency arrangement? Equally important is checking the consultant’s track record of success in dealing with a company of your size and verifying their independence from any of your suppliers. Once you have selected a knowledgeable consultant, be sure to review together your company’s goals and needs so there is a full understanding. A quality cost management consultant should be able to provide the systematic approach that is so important in managing your operational costs. Under proper conditions, this can become one of your most predictable and manageable profit centers.

Contact ERA Today! For more information, contact Marylou Garcia, ERA Area Developer for Los Angeles and Orange County: 310-791-5570 or mgarcia@erala.net and visit our website at http://www.erala.net/.